Today, in line with international practice, real estate transactions are generally valued by an independent advisory firm to ensure objectivity and transparency in the transaction process.
Real estate comprises the following assets:
Land;
Houses and construction works attached to land, including assets attached to such houses and construction works;
Other assets attached to land;
Other assets as prescribed by law…
Under Law on Prices No. 16/2023/QH15, valuation is the advisory activity of determining the monetary value of an asset at a given place and time, for a specific purpose, carried out by a valuation firm or a valuation council in accordance with the Vietnamese Valuation Standards.
Accordingly, real estate valuation is the estimated monetary value of land use rights and of ownership rights to houses, structures and architectural works attached to land, as traded on the market at the valuation date, for a clearly defined purpose, under the conditions of a given market and using appropriate methods prescribed in the Vietnamese Valuation Standards or international practice.
The real estate market is the specific space, time and place in which market participants buy, sell, transfer, lease and mortgage real estate and use related services such as intermediation, brokerage and consultancy, and in which State management plays a decisive role in either promoting or restraining real estate business activities.
Real estate prices depend largely on supply and demand in the market. When demand exceeds supply, real estate prices tend to rise; conversely, when demand falls short of supply, prices tend to fall. However, prices also depend on many other factors, such as market imperfections (“monopoly”, “speculation”, “unfair competition”, etc.) and State intervention, such as State investment in upgrading the infrastructure of residential areas (roads, water supply and drainage, power supply, etc.)
Real estate valuation is one of the key strengths of DTC Valuation. With an extensive price database and highly qualified, experienced professionals, DTC Valuation provides clients with highly reliable information on the value of real estate for each valuation purpose.
